Black Friday and Cyber Monday - how to avoid overspending
We all love a good deal and want the best value for our money. Sales events like Black Friday and Cyber Monday are commonly hyped to offer exactly that. But there's a danger of getting carried away with what seems to be great deals, particularly during the festive season.
It can take up to four months to pay off Christmas debt, according to a 2021 survey by Censuswide on behalf of Lowell. Fortunately, there's nothing like being prepared.
So, before you head to the shops or go online searching for the best Black Friday deals, we've listed a few things to consider that could help you avoid spending beyond your budget. Plus, we've added a couple of tips on how to dodge dodgy deals:
- Start a list
- Put a price on it
- Don't fear missing out. Fear being caught out
- Even if it glitters, it might not be gold
- Start your Black Friday shopping early
- There will likely be the next time
1. Start a list
We've all been caught buying things we think we need and never use. It's so easy to get carried away with the moment and make impulse purchases - promotions, offers and sales are often designed to do precisely that.
To avoid falling into the trap of buying and accumulating "things", make a list of must-haves first: these are essential things you need. They are not things you would like to have or desire.
Sticking to a list of what you need when shopping will help you stop overspending and avoid making rushed decisions or buying something you'll regret later.
TIP: Have a list of what you really need before you shop.
2. Put a price on it
Once you have your list of essentials, work out a budget. But try to be realistic about what you can afford, and don't be tempted to put it all onto credit cards. Getting everything on credit may tempt you to overspend, and what you borrow, you will have to pay back sooner or later.
Before you start shopping, work out the total you can afford and then put your price on each item on your list. Once you have your budget, it's equally important to stick to it and not go over it. If you cannot afford an item, consider getting an alternative item for a lower price, not more. If that's not possible, why not try to wait a bit and save up for that item?
Another way to help you stick to your budget is to get a UK prepaid card. A prepaid card is loaded with money before it is used at shops to buy items. It might be an idea to load what you have budgeted to spend onto your card. There is no overdraft on prepaid cards, which could help remove the temptation to spend more.
Most prepaid cards have fees and caps or limits. Some have handy perks like cashback at selected retailers, so if you think this is an option, be sure to shop around to find the best prepaid card for your needs. It's worth noting these cards do not have credit card protection on purchases, something to weigh up when deciding between prepaid cards and credit cards.
TIP: Know what you can afford for each item on your list before shopping.
3. Don't fear missing out. Fear being caught out
Try not to be tempted by what you see around you, stick to your list and budget. It's easy to think you're missing out when you notice all your friends are getting items you've been eyeing for some time. Or when someone you follow in your social space is raving about their latest purchases. Unfortunately, fear of missing out or FOMO can fuel overspending and influence daily decisions and lifestyle.
If you struggle with FOMO, you could take a break from social media for a week or two or even longer. It's also worth remembering most trends are temporary, and these can quickly phase out.
Another idea is to focus on what you have instead of what you don't have. It might also be good to keep your credit card out of sight or remove it from your wallet or purse in case you're tempted to buy something you've not budgeted for.
Another temptation could be Buy Now Pay Later offers through your favourite retailers. Even if there are no interest charges, an excessive amount of debt all at the same time can add up quickly.
It's also best to avoid getting a short term loan to pay for general shopping, especially if you're struggling. Short term loans can be an expensive way to borrow money and should only be used for one-off emergencies.
Overdraft could be another danger, even though the interest rates are cheaper than short term loans. A recent survey by MustCompare revealed many UK adults are frequently in overdrawn. 1 in 5 said they used their overdraft every month. Overdraft charges can add up, and overdraft services can be removed by your bank if excessively used.
Focusing on your list and budget may help you avoid being tempted to borrow money or buy on credit.
TIP: Think of the cost before buying. And, try to make it a personal ambition not to be driven by everything you see or the latest trends.
4. Even if it glitters, it might not be gold
Some deals during Black Friday and similar events can be cleverly designed to catch your eye and look like an unmissable golden opportunity. But as the saying goes, "All that glitters is not gold".
According to a Which? Investigation in 2020, 98% of the discounts and promotions during Black Friday were available for the same price or less in the six months after the sales! The same investigation found that 85% of the items had been available for the "same price or cheaper six months before Black Friday".
PriceRunner analysed 1,000s of products from 50 large retailers in the UK. They found a fifth of the products on sale were increased in price "ahead of Black Friday and then lowered, creating the fake impression of a sale".
Whether it's Black Friday deals in the UK or January sales you're after, here are a few tips that can help you dodge dodgy deals:
- Price check the same item across various sites and retailers.
Check the specifications, too, to ensure you are making a like-for-like comparison and not comparing older products with new ones, for example. - Look at the actual price rather than the promotion or the discount.
Often, advertisements show "was £300, now £200", making the savings stand out above the cost. This could tempt you to think you are getting a better deal. It's also worth investigating past prices to make sure you are getting a saving. - Check the reviews and research brands.
It's good to support independent and local stores, but you may want to check reviews and research shops and brands you have never purchased from previously. Also, watch out for online scams, which can become prevalent during the festive season. - Check the delivery dates.
Demand is likely to be high during sales events. If you have a time-sensitive purchase, it's best to ensure the item is in stock and can be delivered on time.
TIP: Research the item you need online to compare offers with various retailers before shopping.
5. Start your Black Friday research and shopping early
Panic can cause us to act impulsively, so to avoid rushed, last-minute decisions, try to prepare things as early as possible.
Many retailers start promotions before the actual date - sometimes one to two weeks in advance. And there are often promotion extensions too. Some sites allow you to add items to favourites and watch lists. This way, you get notifications of price changes - beneficial if you need an item and are waiting for a price reduction.
TIP: Prepare early to avoid panic and rushed decisions.
6. There may be the next time
What if you miss a deal? There is the next time, potentially. In the UK, there are many sales opportunities and offers all year round, some of which are retailer specific. While others are more general, we have listed a few with dates below. As a result, you may find the same or similar items come back on sale.
The same applies if you cannot afford the item at the time. If it is not urgent, it may be best to wait until you have the money rather than consider getting a loan or overdraft. Plus, you never know; you may find you did not need it, or you change your mind, or there is something better down the line.
UK Sales dates from 2023 to 2024
- Black Friday: Friday, 24 November 2023
- Cyber Monday: Monday, 27 November 2023
- Boxing Day: Tuesday, 26 December 2023
- January Sales: Starts on boxing day and lasts through to January 2024
- Summer Sales: Usually from the end of June to September 2024
- Amazon Prime Day: Usually mid-July
- Black Friday: Friday, 29 November 2024
- Cyber Monday: Monday, 2 December 2024
- Boxing Day: Thursday, 26 December 2024
TIP: If you miss a deal, look for the same or similar items in future sales offers.
In summary
So, are we saying avoid events like Black Friday and Cyber Monday? No, there are many good deals, just as there are bad deals. The key is to be as prepared as possible.
Having a list of essentials and knowing the amount you can afford to spend on each item can help ensure you don't get carried away. Research can also help avoid those dodgy deals and try to do this as early as possible to avoid panicking at the last minute. Finally, try not to be tempted or influenced into buying things you don't really need or cannot afford by sticking to your list and budget.
Preparation can help ensure your bank balance or credit card is not severely hit during sales events, and you may have fewer regrets about how much you have spent.
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